$NFLX (Netflix, Inc.)

In 3Q16, $NFLX's free cash flow was negative $506MM versus negative $254MM in 2Q16 and negative $252MM in 3Q15. The increase in free cash flow deficit reflects the growth of original content, which the company is increasingly producing and owning, rather than licensing. The company ended the quarter with $1.3Bil in cash and equivalents.

$AAPL Special Event 2017: Apple TV gets an automatic free upgrade to 4K HDR. Apple said it is working with $NFLX to bring their 4K titles to its service, as well as $AMZN's Amazon Prime Video. A new 4K Apple TV starts at $179 for 32GB model and $199 for 64GB model. Orders start on Sept 15, 2017 and ships from Sept 22, 2017.

$DIS said it will launch its ESPN-branded multi-sport video streaming service in early 2018, followed by a new Disney-branded direct-to-consumer streaming service in 2019. With this, $DIS will end its distribution agreement with $NFLX for subscription streaming of new releases, beginning with the CY19 theatrical slate.

$NFLX acquires comic book publisher Millarworld, the creator of Kingsman, Wanted and other iconic characters. The terms of the transactions remained undisclosed. This is first ever acquisition made by $NFLX.

$AAPL’s Services revenue, which the company plans to double by 2021, jumped 22% to an all-time high of $7.27Bil in 3Q17. Apple’ Services business is now much bigger than peer internet services, including $AMZN’s Amazon Web Services ($4.1Bil) and $NFLX ($2.79Bil).

$NFLX intends to continue with the existing model of
providing content on its own network, rather than using other platforms. The
company will maintain its competitive pricing, despite adding premium contents
like HD, to ensure affordability for consumers. Netflix expects to leverage its intensive marketing
strategy to grow further globally.

$NFLX said the innovative content slate continues to
help it expand membership base globally. Currently, the focus is on producing
local content for the international audience, especially in Latin America and
Europe. The company is investing more in Asia as it sees a huge opportunity in
the region in the next couple of years.

$NFLX sees its strong membership growth continuing in
3Q17, and expects to add 0.75MM US members. International net adds for 3Q17 is
forecast at 3.65MM. The company expects positive international contribution to
profit in the full fiscal 2017. Operating margin is expected to be 7.1%
in 2017, and is forecast to grow further in 2018 and beyond.

Video streaming service $NFLX posted a 60% growth in 2Q17 profit to $66MM as streaming membership grew more than expected. EPS moved up to $0.15 from $0.09 last year, and total revenues climbed 32.3%YoY to 2.79Bil. Netflix also crossed the milestone of 100MM members and registered more international members than domestic members during the quarter.

$NFLX plans to offer EUR1Bil of senior notes through an offering outside the U.S. to non-U.S. persons and to qualified institutional buyers. $NFLX plans to use net proceeds for general corporate purposes, which may include content acquisitions, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.

$NFLX does not believe it will see much of an impact due to
competition from $AMZN as the market is vast and there is a lot of opportunity
in terms of content. $NFLX is able to grow its operating margin along with its
content and the company is pleased with this growth.

$NFLX said
net adds in the US were under 100,000 in 1Q17. The company had a back-weighted
1Q which explains some of the net adds guidance versus actual performance. $NFLX
is on a good growth path and is pleased with its international growth. The
company believes there are growth opportunities in the US as well.

$NFLX sees operating margin at 4.4% in 2Q17. As the streaming service intends to continue international investments, it projects a small loss for 2Q17. Netflix will continue to add long-term debt as needed to finance its planned expansion of original content, including in the coming quarter.

Video-on-demand streamer $NFLX posted a 1Q17 total streaming revenue of $2.52Bil, up 38.8%. US streaming revenue was $1.47Bil and international streaming revenue was $1.05Bil for the quarter. Revenue for the international segment grew 62% y-o-y, excluding a $12MM negative impact from currency, while ASP rose 12% on a forex-neutral basis.

In 1Q17, $NFLX posted a 34.7% jump in total revenue to $2.64Bil, pushing the net income up more than six times to $178MM from $28MM a year ago. Diluted earnings grew to $0.40 a share from $0.06 a share, aided by the internet streaming growth internationally, subscriptions and content.

$NFLX said
Greg Peters will become Chief Product Officer in July. He will succeed Neil
Hunt, who will leave the company in mid-2017. $NFLX added that Chief Talent
Officer Tawni Cranz would also leave the company to pursue other interests.

In 4Q16, Comcast-NBCUniversal added nearly 400,000 broadband subscribers. $CMCSA said that it again turned to the video net add positive and made important customer friendly advancements, highlighted by the launch of $NFLX on the X1 platform.

$NFLX stated that on pricing
strategy for 2017 and beyond, it will focus on the consumer experience and has
no plans for any near term changes. The company is looking at it as a model for
expanding the membership base at current rates.